If the money supply increases at the same time that taxes increase, then:
a. interest rates will definitely increase.
b. interest rates will definitely decrease.
c. income will definitely increase.
d. income will definitely decrease.
B
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The production possibilities curve in Figure 2.1 illustrates the notion of
A) opportunity cost. B) increased factory goods production. C) diminishing resources. D) increased farm produce production.
Real GDP is GDP
A) in current-year prices. B) in base-year prices. C) in GDP-prices. D) in that year's prices.
In the prisoner's dilemma setting for producing and stealing, a tax imposed on participants could end up changing the payoff matrix so that
A) one participant is better off, and one participant is worse off. B) both participants are worse off. C) both participants are better off. D) all of the above are possible
If the Fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as
A. active policymaking. B. fiscal policymaking. C. passive policymaking. D. direct policymaking.